From the 1st April 2021, the national minimum wage is set to increase in line with annual changes.
Do you know enough about the National Minimum Wage and when to implement the changes?
As an employer do you know the rules regarding minimum age? What age do you pay it at and what about apprenticeships?
WHAT IS THE NATIONAL MINIMUM WAGE?
The National Minimum Wage (NMW) is a legal requirement which sets out defined amounts dependent on age, that you are required by law to pay your employees.
Almost all workers are entitled by law to be paid no less than the National Minimum Wage.
When employing staff, you will need to pay your workers at least the legal minimum.
There are different levels of National Minimum Wage and the hourly minimum wage rate depends on an employee’s age and whether they are an apprentice.
Current rates
These rates are for the National Living Wage (for those aged 25 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change every April.
| 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice | |
| April 2020 | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
*These are the minimum hourly rates before tax and national insurance deductions.
If you are aged 25 and over, you will receive the National Living Wage which is the highest rate of the National Minimum Wage.
New Rates (1st April 2021)
From April 2021, the following rates will apply:
These rates are for the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age).
| 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice | |
| April 2021 (new rate) | £8.91 | £8.36 | £6.56 | £4.62 | £4.30 |
Apprentices
Apprentices are entitled to the apprentice rate if they’re either:
- aged under 19
- aged 19 or over and in the first year of their apprenticeship
Example
An apprentice aged 22 in the first year of their apprenticeship is entitled to a minimum hourly rate of £4.15.
Apprentices are entitled to the minimum wage for their age if they both:
- are aged 19 or over
- have completed the first year of their apprenticeship
Example
An apprentice aged 22 who has completed the first year of their apprenticeship is entitled to a minimum hourly rate of £8.20.
For further information regarding the National Minimum Wage and who is entitled to it, you can visit the Government website or contact us today for advice.
